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The Direct Method of Preparing the Operating Activities Section of the Statement

question 2

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The direct method of preparing the operating activities section of the statement of cash flows reports major classes of gross cash receipts and gross cash payments.


Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with consequences.

Discriminative Stimulus

A stimulus that signals when a particular response is likely to be followed by a certain type of consequence.

Extinguished Stimulus

A stimulus that previously elicited a response but no longer does so after the process of extinction in conditioning.

Neutral Stimulus

In classical conditioning, a stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

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